Clients often ask me the difference and I give them a simple answer that normally puts an end to the conversation and their questions, much like the answer shane thomas gave, but less detailed.  Direct is people putting in your url in the top and organic is people searching for you.  Here is an example: If I want to buy a book i type in amazon.com (direct traffic) but if i forgot where to buy a book online i search for "where to buy a book online" which directs me to amazon.com (organic traffic).  When i explain it like this, a light bulb goes off and they understand.  Hope that helps.
The Google, Yahoo!, and Bing search engines insert advertising on their search results pages. The ads are designed to look similar to the search results, though different enough for readers to distinguish between ads and actual results. This is done with various differences in background, text, link colors, and/or placement on the page. However, the appearance of ads on all major search engines is so similar to genuine search results that a majority of search engine users cannot effectively distinguish between the two.[1]
Guest blogging and infographic distribution are great ways to attract high quality links. Do not focus on the total number of links. Spend your time focused on quality links, from websites that are highly relevant to your business. If any SEO company tells you that they can rank your website virtually overnight you need to turn around and run away…fast. Google will continue to refresh their Panda, Penguin, and Hummingbird updates, so make sure that you are focusing on quality rather than quantity.

In 2007, Google announced a campaign against paid links that transfer PageRank.[29] On June 15, 2009, Google disclosed that they had taken measures to mitigate the effects of PageRank sculpting by use of the nofollow attribute on links. Matt Cutts, a well-known software engineer at Google, announced that Google Bot would no longer treat nofollowed links in the same way, to prevent SEO service providers from using nofollow for PageRank sculpting.[30] As a result of this change the usage of nofollow led to evaporation of PageRank. In order to avoid the above, SEO engineers developed alternative techniques that replace nofollowed tags with obfuscated Javascript and thus permit PageRank sculpting. Additionally several solutions have been suggested that include the usage of iframes, Flash and Javascript.[31]
So if you're in the local space and you're saying, "Gosh, Google has really taken away the ability for my website to get the clicks that it used to get from Google local searches," going into Google My Business and optimizing to provide information such that people who perform that query will be satisfied by Google's result, yes, they won't get to your website, but they will still come to your business, because you've optimized the content such that Google is showing, through Google My Business, such that those searchers want to engage with you. I think this sometimes gets lost in the SEO battle. We're trying so hard to earn the click to our site that we're forgetting that a lot of search experience ends right at the SERP itself, and we can optimize there too.
Organic is different. Matching keywords to user intent means you may be present in many searches. The user may find you consistently, and once they get to your site, they are more likely to stay. Organic users are still your best long-term customers. In my experience, they have lower bounce rates and more pages visited, and they are more likely to return.
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